Major Gulf bourses gain on rising oil prices

Major stock markets in the Gulf rose in early trade on Wednesday, in response to a surge in oil prices in the previous session, with the Qatari index on track to end three sessions of losses, Reuters reported.

Crude prices, a key catalyst for the Gulf’s financial markets, jumped nearly 4% the previous.

Oil prices have dropped in recent weeks to around $95 per barrel from as high as $120 on fears of a Chinese economic slowdown and a recession in the West.

The benchmark index .TASI in the kingdom added 0.2%, led by a 0.8% increase in oil Saudi Aramco 2222.SE.

However, Saudi Arabian supermarket retailer BinDawood Holding 4161.SE fell around 4% after it reported a fall in quarterly earnings.

Brent crude LCOc1 futures for October settlement were up 84 cents, or 0.83%, to $101.04 a barrel by 0820 GMT, after rising 3.9% on Tuesday.

Dubai’s main share index .DFMGI gained 0.4%, bolstered by a 0.9% rise in blue-chip developer Emaar Properties EMAR.DU.

Emaar Properties said on Tuesday Namshi deal will result in net profit of 628.7 million dirhams ($171.17 million).

On Saturday, Emaar said it is selling fashion e-commerce venture Namshi to Noon, an e-commerce company backed by Dubai billionaire Mohamed Alabbar and Saudi Arabian sovereign fund the Public Investment Fund (PIF).

Deal values Namshi at $335.2 million.

In Abu Dhabi, the index .FTFADGI added 0.1%, helped by a 0.1% gain in the United Arab Emirates’ biggest lender First Abu Dhabi Bank FAB.AD.

The Qatari index .QSI climbed 0.5%, with Qatar Islamic Bank QISB.QA putting on 0.8% and sharia-compliant lender Masraf Al Rayan MARK.QA trading 1.1% higher.